Slavie Federal Savings Bank in Bel Air, Md., is taking steps to up its regulatory capital.
The $177 million-asset thrift said Thursday that it would also improve asset quality and reduce credit risk as part of an agreement it entered into in July with the Office of the Comptroller of the Currency. The thrift is looking to lift its Tier 1 capital ratio to 9% by Sept. 30; the ratio stood at 6.48% at June 30.
Slavie is also trying to achieve a total risk-based capital ratio to 14%, compared to 12.45% on June 30. The company did not say how it plans to raise capital.
"The agreement does not affect the bank's ability to continue to conduct its banking business with customers in a normal manner," Philip E. Logan, the chief executive of SFSB, Slavie's parent company, said in a press release.
Slavie said it has roughly $40 million in liquid funds, and that it has increased its loan-loss allowance to 4.63% of total loans at June 30 to cover anticipated losses.
